Johnf Gembara News Today

William Mahon, who served under Richard M. Daley, Rahm Emanuel and Lori Lightfoot, served on the board of the crooked Chicago bank.

A month after Edward H. Gobbo got out of bankruptcy, Washington Federal Bank for Savings CEO John F. Gembara starting giving him millions more in loans, records show. When the bank went bust, Gobbo or his immediate family owed over $3.8 million on 27 residential loans, some years overdue.

These Washington Federal Bank for Savings customers had no idea the high interest rates that attracted them were feeding the fraud. The bank’s “smooth operators” lured them in, the daughter of one victim says.

Matczuk, who said he did odd jobs for Washington Federal Bank for Savings and its employees, was given the money on orders of the late bank chief John F. Gembara.

William M. Mahon was a high-ranking City Hall official under three former mayors and had close ties to the Daley family’s political organization.

Over seven years, Janice Weston, who was senior vice president of the clout-heavy bank, ordered employees to fool federal regulators by backdating loan documents.

Jan Kowalski pleaded guilty last year to concealing assets from a bankruptcy trustee. She helped her brother, Robert Kowalski, hide more than $357,000 while representing him as an attorney in bankruptcy court.

Jan Kowalski pleaded guilty last year to concealing assets from a bankruptcy trustee. She helped her brother, Robert Kowalski, hide more than $357,000 while representing him as an attorney in bankruptcy court.

Brian Fong is cooperating with prosecutors. Fifteen bank officials, workers and borrowers have been charged, and a Daley family was convicted of cheating on his taxes in a related case.

Authorities say they’ve recovered $59 million toward the money lost when they shut down Washington Federal Bank for Savings, but they’re still out another $81 million, records show.